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I have lower (10psi) oil pressure in my 2000 GT. The local dealership said the engine needs to be replaced. I only have 57K miles on the engine. I think it only needs a new oil pump. Tell me what you think...
You have a spun rod or main bearing . And to fix that would require removing the engine so you might as well rebuild the shortblock . I would agree with you on the oil pump , but since you said it knocks that is a tell tale sign of a bearing . Your just like me you always hope for the best but if your luck is anything like mine then you should plan on replacing the shortblock , magnaflux the heads , and do a valve job . A good shop that is reasonable should do all this for around 2000 if you remove and install the engine yourself .